By Terryn Shiells, Commodity News Service Canada
WINNIPEG, July 9 – Canola contracts on the ICE Futures Canada platform were down sharply at 10:50 CDT Wednesday, catching up with the recent declines seen in Chicago soybean and soyoil futures, analysts said.
Reports of very favourable growing conditions for the US soybean crop weighed on both soybean and canola futures.
Spillover pressure from the weakness in European rapeseed futures and the upswing in the value of the Canadian dollar were also bearish.
Talk that demand is fading for canola, as it has lost its “cheapness” relative to competing oilseeds, further undermined values, brokers said.
Ongoing concerns about flooding in Western Canada were supportive overall, but crops outside of the affected areas were said to be looking very good.
Slow farmer selling helped to keep a firm floor under the market.
As of 10:50 CDT Wednesday, about 12,400 contracts had traded.
Milling wheat, barley and durum were untraded following slight price revisions after Tuesday’s close.
Prices in Canadian dollars per metric ton at 10:50 CDT:
